Providing ancillary services for future smart microgrid can be a challenging task because of lack of conventional automatic generation control (AGC) and spinning reserves, and expensive storage devices. In addition, strong motivation to increase the penetration of renewable energy in power systems, particularly at the distribution level, introduces new challenges for frequency and voltage regulation. Thus, increased attention has been focused on demand response (DR), especially in the smart grid environment, where two-way communication and customer participation are part of. This paper presents a comprehensive central DR algorithm for frequency regulation, while minimizing the amount of manipulated load, in a smart microgrid. Simulation studies have been carried out on an IEEE 13-bus standard distribution system operating as a microgrid with and without variable wind generation. Simulation results show that the proposed comprehensive DR control strategy provides frequency (and consequently voltage) regulation as well as minimizing the amount of manipulated responsive loads in the absence/presence of wind power generation.

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The concept of active distribution network has emerged by the application of new generation and storage technologies, demand flexibility, and communication infrastructure. The main goal is to create infrastructure and algorithms to facilitate an increased penetration of distributed energy resources, application of demand response and storage technologies, and encourage local generation and consumption within the distribution network. However, managing thousands of prosumers with different requirements and objectives is a challenging task. To do so, market mechanisms are found to be necessary to fully exploit the potential of customers, known as Prosumers in this new era. This paper offers an advanced retail electricity market based on game theory for the optimal operation of home microgrids (H-MGs) and their interoperability within active distribution networks. The proposed market accommodates any number of retailers and prosumers incorporating different generation sources, storage devices, retailers, and demand response resources. It

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